The Labor Department reported today that Initial Jobless claims fell 11,000 in the latest week to 457,000 and below the 464,000 that was expected, while Continuing Claims increased 81,000 to 4.565 million. States reported 3.253 million persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending July 10, a decrease of 230,000 from the prior week. The labor market continues to remain sluggish as the recovery in the economy slows. Mortgage Bonds, which influence home loan rates, are trading flat this morning after the recent rally that has pushed borrowing rates to record lows. When Mortgage Bond prices rise, home loan rates tend to move lower. They work in inverse relationships. The Treasury will sell $29B 7-Year T Notes today with the results to be released at 1:00pm ET and will have an impact on the capital markets when released. The Federal Reserve released its Beige Book yesterday afternoon reporting that economic growth slowed in the past 2 months. Nearly all of the Fed districts reported sluggish housing markets in the months since the homebuyer tax credit expired on April 30. Oil giant Exxon Mobil easily beat 2nd quarter estimates as profits nearly doubled and was the biggest increase since 2003. Earnings per share rose to $1.60, above the $1.45 that was expected.

Brought to you, courtesy of The Mortgage Market Guide